A report on the country’s economic situation post Cyclone Winston reveals the debt risks breaching 50 percent ratio level.
The ANZ Bank adds though while government’s finances would be stretched, Fiji’s strong macroeconomic fundamentals will help withstand the adverse impact of the storm.
Agriculture, hospitality and housing are listed as the sectors with the most damage with the sugar industry forecasting 40 million US dollar loss.
The report adds that the share of agriculture in the Fijian economy is relatively small at 11% compared to 70% in services suggesting the bulk of the economy is intact and could rebound quickly.
The ANZ report also highlighted that Fiji’s economic prospects shall ultimately be determined by how adverse the impact of the cyclone is on tourism.
“The silver lining for Fiji is that its worst affected area, Koro Island, is not amongst the top ten travel destinations within Fiji. Furthermore, the disaster occurred during the seasonal lull season in tourism, suggesting seasonal employment would not be affected.”
“Though we see GDP growth moderating in the near term, momentum will likely resume its pace in late 2016, supported by reconstruction efforts.”